MARKET MAKER
Market maker is a firm or individual who actively quotes two-sided markets in a security, providing bids and offers.
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Market impact refers to the effect that a trade or series of trades can have on the price of an asset. In trading, large orders or sudden buying/selling activity can lead to significant price movements, especially in less liquid markets. Traders need to account for market impact when executing large trades, as it can result in slippage—where the execution price deviates from the expected price. Effective strategies, such as using limit orders or spreading trades over time, can help minimize market impact.